Creates the Metropolitan Transit Authority Small Business mentoring program.
Ayes (30): Kruger, Krueger, Stachowski, Oppenheimer, Montgomery, Duane, Parker, Stavisky, Dilan, Stewart-Cousins, Thompson, Breslin, Diaz, Espada, Klein, Perkins, Valesky, Peralta, DeFrancisco, Johnson O, Volker, Padavan, LaValle, Seward, Farley, Larkin, Nozzolio, Leibell, Marcellino, Robach
Ayes W/R (3): Saland, Hannon, Maziarz
Ayes (34): Adams, Addabbo, Alesi, Aubertine, Breslin, Diaz, Dilan, Duane, Espada, Farley, Foley, Hassell-Thomps, Huntley, Johnson C, Klein, Krueger, Kruger, Montgomery, Onorato, Oppenheimer, Parker, Peralta, Perkins, Sampson, Savino, Schneiderman, Serrano, Smith, Squadron, Stachowski, Stavisky, Stewart-Cousins, Thompson, Valesky
Nays (25): Bonacic, DeFrancisco, Flanagan, Fuschillo, Golden, Griffo, Hannon, Johnson O, Lanza, Larkin, LaValle, Leibell, Libous, Little, Marcellino, Maziarz, McDonald, Nozzolio, Padavan, Ranzenhofer, Robach, Saland, Skelos, Volker, Young
Excused (3): Morahan, Seward, Winner
BILL NUMBER: S5987B
TITLE OF BILL : An act to amend the public authorities law, in relation to establishing the metropolitan transportation authority small business mentoring program; and providing for the repeal of such provisions upon expiration thereof
PURPOSE OR GENERAL IDEA OF BILL : To authorize the metropolitan transportation authority, and its subsidiaries and affiliates (collectively, the "MTA), to establish a mentoring program that will provide small businesses with mentoring opportunities by matching them with experienced constriction management firm mentors and by providing opportunities to compete for certain designated public work contracts.
SUMMARY OF SPECIFIC PROVISIONS : This bill would authorize the MTA to:
1. Establish a small business mentoring program for businesses which have been certified by the Small Business Administration and meet other criteria established by the authority;
2. Provide small businesses accepted into the program with the opportunity, for up to four years, to obtain the expertise and assistance of authority-provided experience mentor firms to enable them to compete for and perform authority public work contracts. Such small businesses will also have the opportunity to compete with other designated small businesses in the mentor program for certain public work contracts designated for inclusion in the program;
3. Competitively select, designate and contract with one or more experienced constriction management firms that will provide mentoring services to the small businesses participating in the small business mentoring program and to assign such mentors to those small businesses in the program;
4. For small business mentoring program contracts, waive the requirements for the solicitation and award of public work contacts set forth in other provisions of the public authorities law, and for a performance, payment or other guarantee bond, as set forth in the state finance law, or which prohibit the authority from designating an insurance company or obtaining insurance for a contractor, as set forth in the state insurance law;
5. For small businesses which have successfully completed the small business mentoring program, for up to an additional four years, waive the requirements for the solicitation and award of public work contracts set forth in other provisions of the public authorities law, for specified contacts not to exceed two million dollars;
6. For small businesses which have successfully completed the small business mentoring program, for up to an additional four years, provide assistance, including authority guarantees, in obtaining bid, payment and performance bonding for public work contracts; and
7. Engage mentoring firms to provide small businesses which have been awarded authority contracts guidance, advice and assistance in the performance of the contracts.
JUSTIFICATION : The goal of the program is to develop business capabilities of small construction firms, so that they become capable of successfully competing for and completing larger projects, ultimately widening the prospective pool of construction firms competing for authority public work projects. The program is designed to allow the protege firms to grow their businesses by starting on small construction projects that are within their financial and technical capabilities and to provide them with the training and guidance they need to develop the skills required to handle larger projects, either as contractors or as subcontractors, At the same time, the program must ensure that the projects are completed on time and at a fair and reasonable construction.
The purpose of this mentoring program is to provide small businesses with the mentoring services of experienced construction firms. These mentor firms will: provide business training to the small businesses in the program in the skills necessary to operate a successful construction business and to compete for and to perform a public work contract; provide assistance to the small businesses to asses the outcome if a small business competes for but is not awarded a contract; and provide guidance, advice and assistance to the small businesses in the performance of the contract. The bill also allows the authority to waive contract public bidding requirements for contracts which have been designated for the small business mentoring program, and it authorizes the authority to waive bonding and insurance requirements which have traditionally been impediments to small businesses.
This program is in the public interest as it will encourage small businesses to bid for public work and to provide them with guidance and advice in the performance of that work after award, The program will ultimately increase competition for public work contracts, as it will provide an atmosphere in which increasing numbers of small businesses succeed in bidding for and performing such work.
PRIOR LEGISLATIVE HISTORY : S.5987 of 2009 06/19/09 Referred to Rules 07/15/09 Ordered to Third Reading CAL.874 07/16/09 Substituted By A.8681 A.08681 Wright (MS) AMEND=A 06/03/09 Referred to Corporations, Authorities and Commissions 06/16/09 Reported Referred to Ways and Means 06/18/09 Referred to Rules 07/16/09 Substituted for S.5987 07/16/09 3RD Reading Calendar 74 07/16/09 Recommitted to Rules 01/06/10 Died in Senate 01/06/10 Returned to Assembly 01/06/10 Ordered to Third Reading Calendar 618 03/15/10 Amended on Third Reading 8681A 01/06/10 Referred to Transportation 01/14/10 Committee Discharged and Committed to Corporations, Authorities and Commissions 03/01/10 Amend and Recommit to Corporations, Authorities and Commissions 03/01/10 Print Number 5987A
FISCAL IMPLICATIONS : To be determined
EFFECTIVE DATE : This Act shall take effect immediately shall expire December 31, 2019 when upon such date the provision of this Act shall be deemed repealed; provided that such expiration shall not apply to pending and awarded public work contacts.
STATE OF NEW YORK ________________________________________________________________________ 5987--B 2009-2010 Regular Sessions IN SENATE June 19, 2009 ___________Introduced by Sens. SAMPSON, HASSELL-THOMPSON -- read twice and ordered printed, and when printed to be committed to the Committee on Rules -- recommitted to the Committee on Transportation in accordance with Senate Rule 6, sec. 8 -- committee discharged and said bill committed to the Committee on Corporations, Authorities and Commissions -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- reported favorably from said commit- tee and committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the public authorities law, in relation to establishing the metropolitan transportation authority small business mentoring program; and providing for the repeal of such provisions upon expira- tion thereof THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Legislative findings. Historically, in the construction industry, there have been significant obstacles to the ability of small businesses to compete for public work contracts. These include the lack of sufficient construction management expertise to compete for and perform public work contracts and prime contractor and statutory public work contracting requirements that may present insurmountable obstacles to a small, inexperienced business including requirements with respect to bonding, insurance and competitive bidding. It is hereby declared that there is a public purpose in initiating a mentoring program to be implemented by the metropolitan transportation authority for itself and its affiliates and subsidiaries that will afford participating small businesses with the opportunity to obtain public work construction management experience and training by providing the small businesses with the mentoring services of an experienced construction firm and with the opportunity to compete with certain otherEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD14142-08-0 S. 5987--B 2
small businesses in the program for the award of designated public work contracts. It is also hereby declared to be in the public interest of the state of New York to authorize the metropolitan transportation authority and its affiliates and subsidiaries to allocate a portion of their funds for the purpose of retaining on a competitive basis successful construction management firms to act as mentors to small businesses participating in the mentoring program, to provide such small businesses training to facilitate their growth into successful bidders and performers on public work contracts. It is also in the public interest for the state of New York to provide for certain exceptions to the provisions of the public authorities law, the state finance law, and the insurance law to enable the metropolitan transportation authority and its affiliates and subsid- iaries to designate specific public work contracts for award through the mentoring program to competing small businesses participating in the program and to waive or modify otherwise applicable requirements for advertised and sealed competitive bidding, bonding, and insurance for such designated public work contracts. S 2. The public authorities law is amended by adding a new section 1265-b to read as follows: S 1265-B. METROPOLITAN TRANSPORTATION AUTHORITY SMALL BUSINESS MENTOR- ING PROGRAM. 1. DEFINITIONS. AS USED IN THIS SECTION, UNLESS THE CONTEXT REQUIRES OTHERWISE: (A) "AUTHORITY" MEANS THE METROPOLITAN TRANSPORTA- TION AUTHORITY AND ITS SUBSIDIARIES CONSISTING OF THE LONG ISLAND RAIL ROAD COMPANY, METRO-NORTH COMMUTER RAILROAD COMPANY, METROPOLITAN SUBUR- BAN BUS AUTHORITY, STATEN ISLAND RAPID TRANSIT OPERATING AUTHORITY, MTA BUS, MTA CAPITAL CONSTRUCTION COMPANY, AND FIRST MUTUAL TRANSPORTATION ASSURANCE COMPANY, AND ITS AFFILIATES CONSISTING OF THE NEW YORK CITY TRANSIT AUTHORITY, TRIBOROUGH BRIDGE AND TUNNEL AUTHORITY, AND MANHATTAN AND BRONX SURFACE TRANSIT OPERATING AUTHORITY; (B) "CHAIRMAN" MEANS THE CHAIRMAN OF THE AUTHORITY AND ITS SUBSID- IARIES AND AFFILIATES; (C) "SMALL BUSINESS" MEANS A BUSINESS IN THE CONSTRUCTION TRADES WHICH (I) IS INDEPENDENTLY OWNED AND OPERATED; (II) HAS ANNUAL REVENUES NOT EXCEEDING A FISCAL LIMITATION OF FIVE MILLION DOLLARS OR SUCH LESSER AMOUNT AS ESTABLISHED BY THE AUTHORITY PURSUANT TO THESE PROVISIONS; AND (III) MEETS ADDITIONAL CRITERIA AS OTHERWISE ESTABLISHED BY THE CHAIRMAN IN CONSULTATION WITH THE MEMBERS OF THE MTA SMALL BUSINESS MENTORING PROGRAM ADVISORY COMMITTEE. THE CHAIR OF THE COMMITTEE SHALL BE THE CHIEF DIVERSITY OFFICER OF THE MTA. THE AUTHORITY SHALL ESTABLISH A DETAILED DEFINITION IN GENERAL AND SPECIFIC TO DIFFERENT SEGMENTS OF THE CONSTRUCTION INDUSTRY TO THE EXTENT NECESSARY TO REFLECT DIFFERING CHAR- ACTERISTICS OF SUCH SEGMENTS BASED ON THE CRITERIA USED BY THE UNITED STATES SMALL BUSINESS ADMINISTRATION FOR LOANS TO SMALL BUSINESSES AS SET FORTH IN SECTIONS 121.301 THROUGH 121.305, OR FOR AWARDING GOVERN- MENT PROCUREMENTS AS SET FORTH IN SECTIONS 121.401 THROUGH 121.413, OF SUBPART A OF PART 121 OF CHAPTER I OF TITLE 13 OF THE CODE OF FEDERAL REGULATIONS AS AMENDED, AND SUCH OTHER CRITERIA AS DETERMINED BY THE AUTHORITY; (D) "SMALL BUSINESS MENTORING PROGRAM" IS A PROGRAM ESTABLISHED BY THE AUTHORITY PURSUANT TO THESE PROVISIONS TO PROVIDE SMALL BUSINESSES ACCEPTED INTO THE PROGRAM WITH THE OPPORTUNITY: (I) FOR UP TO FOUR YEARS, TO COMPETE FOR AND, WHERE AWARDED, TO PERFORM CERTAIN AUTHORITY PUBLIC WORK CONTRACTS TO BE DESIGNATED BY THE AUTHORITY FOR INCLUSION IN THIS PROGRAM UNDER THIS SUBPARAGRAPH, WITH THE ASSISTANCE OF AN AUTHORITY-PROVIDED MENTOR, WHICH SHALL BE A FIRMS. 5987--B 3
COMPETITIVELY SELECTED BY THE AUTHORITY THAT HAS EXTENSIVE CONSTRUCTION MANAGEMENT AND MENTORING EXPERIENCE, WITH THE MENTOR TO PROVIDE THE SMALL BUSINESS WITH ADVICE AND ASSISTANCE IN COMPETING FOR AND MANAGING AUTHORITY PUBLIC WORK CONTRACTS; AND (II) FOR A SMALL BUSINESS MENTORING PROGRAM PARTICIPANT WHICH THE AUTHORITY HAS DETERMINED HAS SUCCESSFULLY COMPLETED THE PROGRAM UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH, FOR UP TO FOUR ADDITIONAL YEARS, (A) ADDITIONAL OPPORTUNITIES TO COMPETE WITH OTHER DESIGNATED SMALL BUSI- NESSES IN THE PROGRAM FOR CERTAIN PUBLIC WORK CONTRACTS TO BE DESIGNATED FOR INCLUSION UNDER THIS SUBPARAGRAPH AND, WHERE AWARDED, TO PERFORM SUCH AUTHORITY PUBLIC WORK CONTRACTS, WITH THE FURTHER ASSISTANCE OF AN AUTHORITY-PROVIDED MENTOR, WHICH SHALL BE A FIRM COMPETITIVELY SELECTED BY THE AUTHORITY THAT HAS EXTENSIVE CONSTRUCTION MANAGEMENT AND MENTOR- ING EXPERIENCE, WITH THE MENTOR TO PROVIDE THE SMALL BUSINESS WITH ADVICE AND TECHNICAL ASSISTANCE IN COMPETING FOR AND MANAGING AUTHORITY PUBLIC WORK CONTRACTS, AND (B) AUTHORITY-PROVIDED ASSISTANCE, AS DETER- MINED BY THE AUTHORITY, FOR SUCH A SMALL BUSINESS TO OBTAIN BONDING FOR PUBLIC WORK CONTRACTS THAT ARE COMPETITIVELY AWARDED PURSUANT TO PROVISIONS OF LAW OTHER THAN THIS SECTION. (E) "SMALL BUSINESS MENTORING PROGRAM CONTRACT" MEANS A NON-FEDERALLY FUNDED AUTHORITY PUBLIC WORK CONTRACT DESIGNATED BY THE AUTHORITY, IN AN ESTIMATED AMOUNT OF NOT MORE THAN ONE MILLION DOLLARS FOR CONTRACTS UNDER SUBPARAGRAPH (I) OF PARAGRAPH (D) OF THIS SUBDIVISION AND THREE MILLION DOLLARS FOR CONTRACTS UNDER SUBPARAGRAPH (II) OF PARAGRAPH (D) OF THIS SUBDIVISION, FOR WHICH BIDS OR PROPOSALS ARE TO BE INVITED AND ACCEPTED ONLY FROM BUSINESSES THAT ARE ENROLLED IN THE SMALL BUSINESS MENTORING PROGRAM AND HAVE BEEN SELECTED BY THE AUTHORITY TO COMPETE FOR THE CONTRACT. 2. SMALL BUSINESS MENTORING PROGRAM. (A) PURSUANT TO THESE PROVISIONS, THE AUTHORITY MAY ESTABLISH A SMALL BUSINESS MENTORING PROGRAM. IN CONNECTION THEREWITH, THE AUTHORITY MAY DETERMINE THE CRITERIA PURSUANT TO WHICH A SMALL BUSINESS SHALL BE ELIGIBLE FOR AND SELECTED TO PARTIC- IPATE IN THE PROGRAM UNDER SUBPARAGRAPHS (I) AND (II) OF PARAGRAPH (D) OF SUBDIVISION ONE OF THIS SECTION, THE NUMBER OF PARTICIPANTS TO PARTICIPATE IN EACH SUCH COMPONENTS OF THE PROGRAM, THE CRITERIA FOR THE COMPETITIVE SELECTION OF THE FIRMS THAT WILL PROVIDE SMALL BUSINESSES WITH MENTORING SERVICES, THE ASSIGNMENT OF A MENTOR TO A SPECIFIC SMALL BUSINESS IN THE SMALL BUSINESS MENTORING PROGRAM, AND THE FUNDING FOR THE PROGRAM. (B) UNDER THE SMALL BUSINESS MENTORING PROGRAM, THE CHAIRMAN OR THE CHAIRMAN'S DESIGNEE IS AUTHORIZED, NOTWITHSTANDING ANY OTHER PROVISION OF LAW: (I) TO DESIGNATE WHICH ELIGIBLE PUBLIC WORK CONTRACTS SHALL BE SMALL BUSINESS MENTORING PROGRAM CONTRACTS UNDER SUBPARAGRAPHS (I) AND (II) OF PARAGRAPH (D) OF SUBDIVISION ONE OF THIS SECTION, RESPECTIVELY; (II) TO ESTABLISH STANDARDS FOR QUALIFYING SMALL BUSINESS MENTORING PROGRAM PARTICIPANTS TO COMPETE FOR A SMALL BUSINESS MENTORING PROGRAM CONTRACT, PROVIDED THAT NO LESS THAN THREE QUALIFIED SMALL BUSINESSES IN THE PROGRAM MUST SUBMIT RESPONSIVE OFFERS TO PERFORM THE CONTRACT; (III) TO DETERMINE WHEN BIDS OR PROPOSALS FOR A SMALL BUSINESS MENTOR- ING PROGRAM CONTRACT SHOULD BE RESTRICTED TO SMALL BUSINESS MENTORING PROGRAM PARTICIPANTS WHICH, PRIOR TO THE RECEIPT OF BIDS OR PROPOSALS, HAVE BEEN QUALIFIED BY THE AUTHORITY FOR SUCH COMPETITION; (IV) TO COMPETITIVELY SELECT, DESIGNATE AND CONTRACT WITH ONE OR MORE EXPERIENCED CONSTRUCTION MANAGEMENT FIRMS THAT, UNDER THE GENERAL SUPER- VISION OF THE AUTHORITY, WILL PROVIDE MENTORING SERVICES TO THE SMALLS. 5987--B 4
BUSINESSES PARTICIPATING IN THE SMALL BUSINESS MENTORING PROGRAM, AND TO ASSIGN SUCH MENTORS ONE OR MORE DESIGNATED SMALL BUSINESSES PARTICIPAT- ING IN THE PROGRAM; (V) FOR SMALL BUSINESS MENTORING PROGRAM CONTRACTS, EXCEPT AS SET FORTH HEREIN, TO WAIVE REQUIREMENTS FOR THE SOLICITATION AND AWARD OF A PUBLIC WORK CONTRACT PURSUANT TO SECTIONS TWELVE HUNDRED NINE, TWELVE HUNDRED SIXTY-FIVE-A AND TWENTY-EIGHT HUNDRED SEVENTY-NINE OF THIS CHAP- TER AND ANY OTHER PROVISION OF LAW; (VI) TO ASSIST ONLY SMALL BUSINESS MENTORING PROGRAM PARTICIPANTS THAT HAVE BEEN AWARDED SMALL BUSINESS MENTORING PROGRAM CONTRACTS TO OBTAIN ANY SURETY BOND OR CONTRACT OF INSURANCE REQUIRED OF THEM IN CONNECTION WITH SUCH CONTRACT ONLY NOTWITHSTANDING ANY PROVISION OF SECTION TWO THOUSAND FIVE HUNDRED FOUR OF THE INSURANCE LAW TO THE CONTRARY; AND (VII) FOR SMALL BUSINESSES THAT HAVE BEEN ACCEPTED INTO THE SMALL BUSINESS MENTORING PROGRAM UNDER SUBPARAGRAPH (II) OF PARAGRAPH (D) OF SUBDIVISION ONE OF THIS SECTION, IN ADDITION TO THE BENEFITS OF SUCH PROGRAM AND NOTWITHSTANDING ANY OTHER PROVISION OF LAW, TO PROVIDE TECH- NICAL ASSISTANCE IN OBTAINING BID, PAYMENT AND PERFORMANCE BONDING FOR AUTHORITY PUBLIC WORK CONTRACTS THAT ARE NOT SMALL BUSINESS MENTORING PROGRAM CONTRACTS, FOR WHICH THE SMALL BUSINESS IS OTHERWISE QUALIFIED. 3. WITHDRAWAL OF DESIGNATION OF SMALL BUSINESS MENTORING PROGRAM CONTRACTS. (A) IF THE TOTAL NUMBER OF QUALIFIED SMALL BUSINESS MENTORING PROGRAM PARTICIPANTS THAT RESPOND TO A COMPETITION AND ARE CONSIDERED CAPABLE OF MEETING THE SPECIFICATIONS AND TERMS OF THE INVITATION TO COMPETE IS LESS THAN THREE, OR IF THE CHAIRMAN OR THE CHAIRMAN'S DESIG- NEE DETERMINES THAT ACCEPTANCE OF THE BEST OFFER WILL RESULT IN THE PAYMENT OF AN UNREASONABLE PRICE, THE AUTHORITY MAY REJECT ALL OFFERS AND WITHDRAW THE DESIGNATION OF THE CONTRACT AS A SMALL BUSINESS MENTOR- ING PROGRAM CONTRACT. (B) IF THE AUTHORITY WITHDRAWS THE DESIGNATION OF CONTRACT AS A SMALL BUSINESS MENTORING PROGRAM CONTRACT, THE FIRMS, IF ANY, THAT MADE OFFERS SHALL BE NOTIFIED. INVITATIONS TO COMPETE CONTAINING THE SAME OR REWRITTEN SPECIFICATIONS AND TERMS SHALL THEN BE RE-ISSUED AS A SMALL BUSINESS MENTORING PROGRAM CONTRACT FOR ONE OR MORE ADDITIONAL CONTRACT PERIOD. 4. CONSTRUCTION MANAGER MENTORS. A MENTOR SHALL PROVIDE SERVICES AND ASSISTANCE TO A SMALL BUSINESS AS DESIGNATED BY THE AUTHORITY, WHICH MAY INCLUDE THE FOLLOWING: (A) PROVIDE BUSINESS TRAINING IN THE SKILLS NECESSARY TO OPERATE A SUCCESSFUL CONSTRUCTION BUSINESS AND TO COMPETE FOR AND PERFORM A PUBLIC WORK CONTRACT; (B) PROVIDE TECHNICAL ASSISTANCE TO THE SMALL BUSINESS TO ASSESS THE OUTCOME IF THE SMALL BUSINESS COMPETES FOR BUT IS NOT AWARDED A CONTRACT; (C) IF THE SMALL BUSINESS MENTORING PROGRAM CONTRACT IS AWARDED TO THE SMALL BUSINESS, PROVIDE GUIDANCE, ADVICE AND TECHNICAL ASSISTANCE TO THE SMALL BUSINESS IN THE PERFORMANCE OF THE CONTRACT; (D) PROVIDE OTHER TECHNICAL ASSISTANCE TO THE SMALL BUSINESS TO FACIL- ITATE LEARNING, TRAINING AND OTHER ISSUES WHICH MAY ARISE. 5. THE AUTHORITY MAY DELEGATE TO THE CHAIRMAN OR THE CHAIRMAN'S DESIG- NEE, THE AUTHORITY'S RESPONSIBILITIES SET FORTH HEREIN. 6. THE SMALL BUSINESS MENTORING PROGRAM CONTRACTS AUTHORIZED BY THIS LEGISLATION SHALL, FOR THE INITIAL YEAR OF THE PROGRAM, BE IN AN AGGRE- GATE AMOUNT OF NOT LESS THAN TEN MILLION DOLLARS, AND SHALL NOT EXCEED ONE HUNDRED MILLION DOLLARS, WITH THE MAXIMUM AMOUNT IN FUTURE YEARS TO BE SET BY THE CHAIRMAN.S. 5987--B 5
S 3. This act shall take effect immediately and shall expire December 31, 2019 when upon such date the provisions of this act shall be deemed repealed; provided that such expiration shall not apply to pending and awarded public work contracts and provided further that effective imme- diately, the addition, amendment or repeal of any rule, regulation or standard necessary for the implementation of this act on its effective date are authorized and directed to be made and completed on or before such effective date.